E. Coli Outbreak Linked to McDonald's Quarter Pounder

By Ananya Mariam Rajesh and Aishwarya Venugopal
(Reuters) – The number of people infected by the E. coli outbreak tied to McDonald's (NYSE:MCD) Quarter Pounder hamburgers increased to 75 from 49, according to the U.S. Food and Drug Administration (FDA) on Friday.

Among the 61 individuals for whom information was available, 22 have been hospitalized, with two cases developing hemolytic uremic syndrome, a serious condition that can lead to kidney failure.

The E. coli O157:H7 strain has caused the death of one person and is known to lead to severe illness, particularly among the elderly, children, and immunocompromised individuals.

In response to the outbreak, McDonald's temporarily suspended serving the Quarter Pounder in a fifth of its 14,000 U.S. restaurants on Wednesday.

Initial findings from the FDA suggest slivered onions used in the Quarter Pounder as the likely source of the outbreak, supplied by a single supplier serving three distribution centers. Taylor Farms was identified as the supplier for the affected locations, leading McDonald's to initiate a voluntary recall. The supplier also recalled several batches of yellow onions from its Colorado facility.

The U.S. Department of Agriculture announced that, while onions are likely suspects, one of its state partners is testing beef samples from the burger for E. coli.

As of October 24, the outbreak has affected states including Colorado, Kansas, Utah, Wyoming, Iowa, Missouri, Montana, Nebraska, New Mexico, Oregon, Wisconsin, Washington, and Michigan, with Colorado reporting the highest infections at 26.

The Centers for Disease Control and Prevention (CDC) stated that, due to the actions taken by McDonald's and Taylor Farms, the public risk remains very low.

In light of the outbreak, other major U.S. fast food chains, including Taco Bell owner Yum and Burger King's parent company Restaurant Brands (NYSE:QSR), are also removing fresh onions from their menus due to sourcing from Taylor Farms.

As a result of the outbreak, McDonald's shares fell by 2% during mid-day trading, and analyst Peter Saleh from BTIG expressed concerns about ongoing negative publicity and potential for more infections in the near term.